Complaints from frustrated customers were mounting at a major US retailer. More than 20% said they could not find the company’s branded products in shops because items were out of stock. The problem was that efforts to improve service disrupted the company’s low-cost distribution model.

Sometimes the largest companies lead an industry, but in many cases, the leaders that create exceptional value don't rely on scale alone. They use other skills to move into pole position. Large scale still provides a powerful competitive beneﬁt, no doubt. A recent Bain & Co.

Virtually all large companies, even those in old-line industries such as machinery and agriculture, have gone digital to some extent. But at many companies the efforts are falling far short of their potential.